BNPL Product Inputs

Currency

Credit / Purchase Amount

Number of Instalments

Instalment Amount (leave blank to calculate equal)

If blank, equal instalments calculated automatically.

Payment Interval

First Payment Timing

Additional fees included in cost of credit

Mandatory fees (origination, admin) must be included in APR per CCD2 Art. 31 and Reg Z. Late fees are excluded.

Your stated / marketed APR (%) — for comparison

Enter the APR you claim in marketing (e.g. 0%, 9.9%). The tool will highlight any divergence from the regulatory figure.

Please enter a valid amount and number of instalments.

← Enter product parameters and click Calculate

Methodology, Source Notes & Regulatory Citations

CCD2 Directive 2023/2225/EU, Art. 31 — APR calculation using actuarial method. The APR is the rate equating the present value of all drawdowns to the present value of all repayments and charges. Formula: Σ Ck/(1+i)^tk = Σ Dk/(1+i)^sk, where i is the APR (expressed as a decimal divided by 100), and t/s are time periods in years. CCD2 Annex I provides the full mathematical specification. APR is an effective annual rate (not nominal).
TILA Regulation Z, Appendix J — Annual Percentage Rate computations for closed-end credit. The US method uses a unit-period approach. The APR is the nominal rate obtained by multiplying the unit-period rate by the number of unit-periods in a year. For monthly payments: APR = monthly_rate × 12 (nominal annual). This differs from CCD2: CCD2 gives an effective annual rate ((1+r)^12 - 1), while Reg Z gives a nominal rate (r × 12).
Zero-interest BNPL: when there are no fees and interest rate = 0%, APR = 0% under both CCD2 and Reg Z, regardless of payment timing. However, if a mandatory origination fee or administration charge is bundled into the BNPL arrangement, CCD2 Art. 31 requires that charge to be included in the APR calculation, which may produce a non-zero APR even for "0% interest" products.
APR divergence: common BNPL marketing risk. If a merchant advertises "0% APR" but the BNPL arrangement includes mandatory fees, the regulatory APR may differ. Similarly, deferred first payment changes the present value calculation. CFPB Supervisory Highlights 2023 and FCA CP23/5 cite APR misrepresentation as a specific enforcement risk in BNPL marketing.
Newton-Raphson iterative solver: the actuarial APR equation is solved numerically using the Newton-Raphson method (up to 200 iterations, convergence threshold 1×10⁻⁸). For zero-interest, zero-fee products, the solver returns 0% directly without iteration. For equal-instalment loans without fees, the annuity formula provides an exact closed-form solution that the tool uses as the initial guess. Client-side only. Zero PII.

BNPL APR Calculator — EU CCD2 & US TILA